Yesterday stocks closed near the 50-day moving averages; today it
looks like they are going to close below.

S&P 500 and Nasdaq-100 Daily Charts

Today's lower open has pushed the S&P 500 well below its 50-dma,
and now rests just above 1,227 which represents a 38% retracement
of the April and May gains. If that level is lost, 1,200 looks
like the next downside target.

The Nasdaq-100 (QQQ) closed below 50-dma yesterday, and any hopes
of a quick rebound back above looks to be fading. The triple Qs
are expending all their bullish energy just to remain above the
lower boundary of the channel they've been trading in. That line
could also be viewed as the neckline of a head and shoulders
pattern. Volume hasn't been that great on the right shoulder,
but looks to be picking up the past two days.

Nasdaq-100 Winners and Losers

The internals for the Nasdaq-100 look pretty bleak. Only 10
stocks are in positive territory, and 3 of those are retailers.
Lincare Holdings (NASD:LNCR) is the one bright spot up $2.40.
Software and network stocks are taking it on the chin, and some
of the big names like Microsoft and Qualcomm are down over $1.
If the pattern of the past two days holds, we should be getting a
reversal here in the next few hours, but right now it doesn't
look like it.